An Attorney Who Becomes Aware That a Client Has Violated

question 48

True/False

An attorney who becomes aware that a client has violated securities laws must report the violation to the Securities Exchange Commission-which creates a potential conflict with the attorney-client privilege.

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Definitions:

Assignment

The passing of property or rights from one individual to another.

Indorsement

The act of signing one's name on the back of a cheque or other negotiable instrument to make it payable to someone else.

Without Recourse

A term indicating that the holder of a financial instrument, such as a note or bill, cannot demand payment from the original issuer in case of default by the borrower.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument, legally transferring ownership or authorizing a transaction.